The Olympic Park, crucial to London's 2012 bid, has been given the go-ahead.
The Olympic Park would host the opening and closing ceremonies
Four east London boroughs gave planning permission for the 500-acre park, in the Lower Lea Valley, on Thursday.
Tower Hamlets, Newham, Hackney and Waltham Forest planning committees backed the plan at a meeting at City Hall on London's South Bank.
The park would include the Olympic Stadium - where the opening and closing ceremonies would take place - as well as the Olympic Village.
An aquatic centre, velodrome and BMX track, three sports halls, the hockey stadium and accommodation for 17,800 competitors and officials would also be part of the park.
Situated near to the proposed Olympic transport hub in Stratford, the complex would have easy access to the Dome, in Greenwich, and the ExCel centre in Docklands, where other events would be held.
Paris, Madrid, New York and Moscow are also on the shortlist of cities competing to host the 2012 games.
The application for planning permission was made by the London Development Agency - the Mayor's agency for promoting business, economic and cultural growth.
Sebastian Coe, chairman of London 2012, the company bidding to bring the Games to the capital, said: "This decision sends a clear message to the International Olympic Committee that we are ahead of the game, and serious about winning.
"If we win the right to host the Games next July, work could begin the very next day.
"Today's decision is an important step in turning a dream into a reality."